Only 59 per cent of Nigerian banks, fintech companies and other financial institutions surveyed are prepared to meet the Central Bank of Nigeria’s (CBN) January 1, 2027 deadline for local storage of payment transaction data, raising concerns about implementation gaps across the financial sector.
A survey by the National Information Technology Development Agency (NITDA) found that 26 of the 44 institutions that responded to questions on readiness had completed, or expected to complete, the necessary steps before the deadline.
However, 15 institutions said they were unlikely or very unlikely to finish on time, while three were unable to assess their readiness.
The findings were presented on Wednesday at an Executive Regulatory Dialogue on the implementation of the National Sovereign Cloud Initiative and data localisation, organised jointly by NITDA and the CBN.
Implementation gaps persist
NITDA’s Special Assistant on Policy to the Director-General, Dr Muhammad Lawal, said 22 of the 44 institutions had yet to begin implementation, with budget approvals, contract negotiations and system migration among the outstanding tasks.
He said 79 per cent of the digital infrastructure providers surveyed were ready to accommodate additional workloads from financial institutions, suggesting that the main challenges extended beyond the availability of local infrastructure to deployment and migration.
The survey, conducted between October 13 and 27, received responses from 47 financial institutions and 42 digital infrastructure providers. The number of responses varied across individual questions.
Lawal said the findings were based on anonymised and aggregated responses provided by participants and should not be interpreted as a formal assessment of regulatory compliance.
He added that respondents called for better coordination among the CBN, NITDA and the Nigeria Data Protection Commission, as well as access to reliable local infrastructure.
CBN maintains January deadline
The CBN reiterated that financial institutions must ensure critical payment transaction data generated in Nigeria are stored and managed within the country in line with applicable regulations.
Dr Rakiya Yusuf, Deputy Governor for Financial System Stability, said the January 1, 2027 deadline was intended to improve regulatory oversight, strengthen operational resilience and safeguard critical financial information.
She cautioned, however, that storing data locally would not, by itself, guarantee security.
Financial institutions must also maintain effective cybersecurity, business continuity, disaster recovery and risk-management systems, she said.
Yusuf added that regulated institutions would remain responsible for risks arising from their relationships with cloud service providers and other third-party technology firms.
She called for cooperation among regulators, financial institutions and technology providers to resolve implementation challenges without undermining innovation or the competitiveness of Nigeria’s financial sector.
Nigeria pushes local cloud capacity
NITDA Director-General Kashifu Inuwa said the Nigerian Sovereign Cloud Initiative was designed to strengthen the country’s control over critical digital infrastructure by expanding domestic capacity for hosting essential services.
He disclosed that Nigerian companies spend more than $850 million annually on cloud services, arguing that stronger local capacity could create jobs, retain more economic value within the country and reduce exposure to external disruptions.
Inuwa said the initiative aligned with the Federal Government’s Nigeria First policy, which prioritises domestic capacity and value creation without isolating Nigeria from global technology.
He cited submarine cable disruptions in 2024 as an example of the risks associated with dependence on digital infrastructure outside the country’s control.
What the CBN directive requires
The CBN issued its data localisation directive in June 2026, requiring banks, fintech companies, mobile money operators and other covered payment service providers to store and manage payment transaction data generated in Nigeria locally.
The policy is part of broader efforts to strengthen regulatory oversight, improve transparency and reduce concentration risks in the country’s expanding digital payments ecosystem.
With the deadline approaching, the survey suggests that many institutions still need to complete key implementation steps, even as local infrastructure providers report readiness to support additional workloads.
The findings place greater emphasis on the need for timely investment, clearer regulatory guidance and coordinated action to ensure institutions can meet the deadline without compromising the security and reliability of financial services.
